1. The Government of Kenya through the Ministry of Industry, Trade and Cooperatives, State Department of Trade is in the process of establishing a National Commodities Exchange. The commodities exchange will materially impact on the livelihoods of millions of Kenya’s smallholder producers and other actors in both agricultural and non-agricultural commodity value chains. In addition, the exchange will provide an appropriate tool for providing farmers and traders with much needed credit opportunities; reducing farmer vulnerability by allowing farmers to sell produce at a time when prices are attractive; reducing post-harvest losses attributed to poor commodity storage practices; and provide employment opportunities along the exchange ecosystem. To facilitate the establishment of the commodity exchange, the State Department undertook a study on the feasibility of establishing a commodity exchange in Kenya. The feasibility study revealed that there exist appropriate business environment for successful establishment of a commodity exchange in Kenya and sufficient support from stakeholders. The study also provided an implementation plan towards the establishment of the Commodities Exchange. The Ministry therefore wishes to hire a long term consultancy firm to provide technical assistance in establishing and operationalizing a commodities exchange in Kenya.

2. The scope of the assignment will include but not limited to:

a) Develop project implementation plan;b) Propose Policy, Legal and Regulatory framework for the Commodities Exchange;c) Develop a framework for collateral management operations and Infrastructure;d) Develop Commodity Exchange trading/clearing and settlement operation guidelines and system specifications;e) Develop ICT systems specifications;f) Carryout out training and Capacity Building of stakeholders;g) Carryout business development and outreach programs; andh) Develop a funding model for the establishment and sustainability of the commodity exchange ecosystem.

3. The services are expected to be carried out tentatively over the duration of twenty four (24) months.

4. The State Department now invites eligible consulting firms (Consultants) to indicate their interest in providing the Consultancy Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria is as follows:

i. General experience of at least ten (10) years in establishing successful commodities exchange in Africa or similar peer jurisdictions;ii. Experience in drafting Legal Framework (legislations) for a successful commodities exchange in Africa;iii. Experience in operations of financial markets with a focus on commodities exchanges;iv. Experience in undertaking Research within the context of commodities exchanges;v. Demonstrated understanding of the current global best practices and trends in the development of commodities exchanges;vi. Experience in collateral management;vii. The technical and managerial organization of the firm. (Provide only the structure of the organization, general qualifications and number of key staff without attaching their CVs); andviii. The applicants must provide certificate of incorporation and evidence of compliance with taxobligations.

5. Consultants may associate with other firms in the form of a joint venture or a sub consultancy to enhance their qualifications. The nature of association, whether it is a joint venture or a sub consultancy, should clearly be stated. In case of joint venture the firm leading the joint venture should be mentioned.

6. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Quality & Cost-Based Selection (QCBS) method set out in the Public Procurement and Asset Disposal Act, 2015 which is available on the Public Procurement Regulatory Authority website: http: //www.ppoa.go.ke.

7. Interested Consultant may obtain further information at the address below during office hours from 1000 to 1600 hours East African Time (GMT + 3) The REOI can also be downloaded from the Ministry website www.industrialization.go.ke.

8. Interested firms must submit an original and two copies of the Expression of Interest (EOI) enclosed in plain sealed envelopes marked with EOI No. MIT&C/SDT/Cons.01/2016-17 to be deposited in the tender box at the State Department, Teleposta Towers 17th floor. The EOIs must be clearly addressed to:

9. Expression of Interests will be opened immediately thereafter in the presence of the applicants or their representatives who choose to attend at Teleposta towers on 18th floor, boardroom. All documents shall be in English and late EOIs shall be rejected.